NEW WASHINGTON LAW REQUIRES ACTION ON NON-COMPETITION AGREEMENTS
On May 8, 2019, Washington’s Governor signed legislation which makes significant changes to the law on the enforceability of the non-competition covenants or agreements which employers require their employees to sign.* As a result, effective January 1, 2020 many of the non-competition agreements employers now have with their employees and others, which are governed by...
Oregon Court of Appeals Finds Coverage Dependent on the Nature of Injury, Regardless of Liability Theory Alleged
Quarterly Newsletter Winter 2019 In a recent case, the Oregon Court of Appeals analyzed whether an “occurrence” under an insurance policy was the alleged negligence or the resulting injury. In light of the plain language of the exclusion, the Court determined the resulting injury, not the nature of the claim, dictated coverage. Epps v. Farmers...
Washington Federal Court Enforces Endorsement Allowing Insurer to Recoup Defense Costs for Uncovered Claims
Quarterly Newsletter Winter 2019 In 2013, the Washington Supreme Court rendered a decision in Nat’l Sur. Corp. v. Immunex Corp., 297 P.3d 688, 691 (Wash. 2013) that an insurer could not seek recoupment of defense costs incurred for uncovered claims when it defended an insured under a reservation of rights. While the Immunex decision rejected...
Washington Federal Court Find Insurer Cannot Refuse to Cover Defense Costs Without Showing of “Actual Prejudice”
Quarterly Newsletter Winter 2019 Washington, like many states, requires an insurer to show that its rights have been prejudiced before it can refuse to cover costs incurred by the insured without the insurer’s consent. Defining prejudice under the circumstances is an often debated (and litigated) topic. Recently, a Washington federal judge weighed in on this...
OREGON FEDERAL COURT FINDS HOA MEMBERS LACK STANDING TO BRING DIRECT ACTION AGAINST INSURER UNDER HOA’S INSURANCE POLICY BECAUSE THEY DO NOT QUALIFY AS INTENDED THIRD-PARTY BENEFICIARIES
Quarterly Newsletter Winter 2018 Recently, the U.S. Federal District Court for the District of Oregon had the opportunity to decide whether members of a Homeowners Association (“HOA”) qualify as intended third-party beneficiaries of the HOA’s insurance policy. In Stanton v. QBE Ins. Corp., 2017 U.S. Dist. LEXIS 185988 (Nov. 9, 2017), the Court held that...
WASHINGTON FEDERAL COURT FINDS THAT STATUTORY NOTICE OF INTENT TO SUE DOES NOT CONSTITUTE “CLAIM” UNDER CLAIMS-MADE POLICY
Quarterly Newsletter Winter 2018 Liability insurance policies can provide coverage on a “claims-made” basis, meaning it generally only covers claims that are first made against the insured during the policy period. A common coverage issue that arises under these policies is when was the “claim” first made, and whether a pre-suit notice to the insured...
A Little Advance Notice on Employment Issues That Will Be Faced by General Counsel in 2018
In the summer of 2017, ALM and a major American law firm launched what was described as the inaugural “General Counsel Up-At-Night” report. That report listed five major areas of concern for general counsel. The areas of focus for the general counsel who participated in the A Little Advance Notice on Employment Issues That Will...
WASHINGTON FEDERAL COURT FINDS THAT SEXUAL ABUSE CLAIM NOT COVERED EVEN WHEN “NEGLIGENCE” CLAIM WAS ALLEGED
Quarterly Newsletter Fall 2018 In the wake of the clergy abuse scandals and the “me too” movement, Washington has seen an uptick in sexual abuse claims. These claims raise coverage issues if the policy provides “occurrence” coverage and/or contains intentional act and/or sexual abuse exclusions. Recently, a Washington federal district court judge weighed on this...
IN ISSUE OF FIRST IMPRESSION, WASHINGTON COURT HOLDS THAT ACTIONS OF PUBLIC ADJUSTER ARE IMPUTED TO INSURED
Quarterly Newsletter Fall 2018 A public adjuster (“PA”) is a person who investigates or reports insurance claims and acts on behalf of the insured during the claim process. Similar to many states, a PA must be licensed in Washington. When acting on behalf of the insured, a PA may make representations to the insurer that...
OREGON COURT HOLDS THAT INSURED MUST ATTEND EUO AS CONDITION PRECEDENT TO COVERAGE DESPITE OREGON STATUTE REQUIRING PROMPT PAYMENT OF PIP BENEFITS
Quarterly Newsletter Fall 2018 The majority of automobile insurance policies contain a clause providing that the insurer may require the insured to submit to an examination under oath (“EUO”) to assist with the insurer’s investigation of the claim. Many policies include the EUO provision in the conditions section of the policy and expressly make the...
WASHINGTON FEDERAL COURT FINDS NO BAD FAITH FOR INSURER’S FAILURE TO RESPOND TO ROOFER’S TENDER WHEN INSURED CANNOT SHOW HARM
Quarterly Newsletter Summer 2018 The United States District Court for the Western District of Washington recently held in Diamond Constr., LLC v. Atl. Cas. Ins. Co., 2018 U.S. Dist. LEXIS 136335 (W.D. Wash., Aug. 14, 2018) that an insurance company’s failure to respond to its insured’s tender of defense did not constitute bad faith because...
WASHINGTON FEDERAL COURT REJECTS INSURANCE FAIR CONDUCT ACT CLAIM ABSENT EVIDENCE OF UNREASONABLE DENIAL OF COVERAGE
Quarterly Newsletter Summer 2018 In 2007, Washington voters passed Referendum 67, which gave rise to Washington’s Insurance Fair Conduct Act (“IFCA”), codified in RCW 48.30 et . seq. Generally speaking, IFCA provides for a cause of action by a “first party claimant to a policy of insurance who is unreasonably denied a claim for coverage...